Present-day Turkey was created in 1923 from the Turkish remnants of the Ottoman Empire. Soon thereafter, the country instituted secular laws to replace traditional religious fiats. In 1945 Turkey joined the UN, and in 1952 it became a member of NATO. Turkey intervened militarily on Cyprus in 1974 to protect Turkish Cypriots and prevent a Greek takeover of the island; the northern 37 percent of the island remains under Turkish Cypriot control. Relations between the two countries remain strained, but have begun to improve over the past few years. In 1984, the Kurdistan Workers' Party (PKK), a Marxist-Leninist, separatist group, initiated an insurgency in southeast Turkey, often using terrorist tactics to try to attain its goal of an independent Kurdistan. The group - whose leader, Abdullah OCALAN, was captured in Kenya in February 1999 - has observed a unilateral cease-fire since September 1999, although there have been occasional clashes between Turkish military units and some of the 4,000-5,000 armed PKK militants, most of whom currently are encamped in northern Iraq. The PKK changed its name to the Kurdistan Freedom and Democracy Congress (KADEK) in April 2002.

Geography

Turkey

Location:

southeastern Europe and southwestern Asia (that portion of Turkey west of the Bosporus is geographically part of Europe), bordering the Black Sea, between Bulgaria and Georgia, and bordering the Aegean Sea and the Mediterranean Sea, between Greece and Syria

strategic location controlling the Turkish Straits (Bosporus, Sea of Marmara, Dardanelles) that link Black and Aegean Seas; Mount Ararat, the legendary landing place of Noah's Ark, is in the far eastern portion of the country

derived from various European continental legal systems; accepts compulsory ICJ jurisdiction, with reservations

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President Ahmet Necdet SEZER (since 16 May 2000)
elections: president elected by the National Assembly for a seven-year term; election last held 5 May 2000 (next to be held NA May 2007); prime minister and deputy prime ministers appointed by the president
note: a National Security Council serves as an advisory body to the government composed of top military and cabinet officials and presided over by the president
cabinet: Council of Ministers appointed by the president on the nomination of the prime minister
head of government: Prime Minister Recep Tayyip ERDOGAN (14 March 2003); note - Abdullah GUL resigned 11 March 2003; Recep Tayyip ERDOGAN was given a mandate to form a new government
election results: Ahmed Necdet SEZER elected president on the third ballot; percent of National Assembly vote - 60%
note: president must have a two-thirds majority of the National Assembly on the first two ballots and a simple majority on the third ballot

Legislative branch:

unicameral Grand National Assembly of Turkey or Turkiye Buyuk Millet Meclisi (550 seats; members are elected by popular vote to serve five-year terms)
elections: last held 3 November 2002 (next to be held NA 2007); note - a special rerun of the General Election in the province of Siirt on 9 March 2003 resulted in the election of Recep Tayyip ERDOGAN to a seat in parliament, a prerequisite for becoming prime minister on 13 March 2003
election results: percent of vote by party - AKP 34.3%, CHP 19.4%, DYP 9.6%, MHP 8.3%, ANAP 5.1%, DSP 1.1%, and others; seats by party - AKP 363, CHP 178, independents 9; note - parties surpassing the 10% threshold are entitled to parliamentary seats

Judicial branch:

Constitutional Court (judges are appointed by the president); Court of Appeals and Council of State (judges are elected by the Supreme Council of Judges and Prosecutors)

Political parties and leaders:

Democratic Left Party or DSP [Bulent ECEVIT]; Justice and Development Party or AKP [Recep Tayip ERDOGAN]; Motherland Party or ANAP [Ahmet Mesut YILMAZ]; Nationalist Action Party or MHP [Devlet BAHCELI]; Republican People's Party or CHP [Deniz BAYKAL]; True Path Party (sometimes translated as Correct Way Party) or DYP [Tansu CILLER]; Young Party or GP [Cem UZAN]

red with a vertical white crescent (the closed portion is toward the hoist side) and white five-pointed star centered just outside the crescent opening

Economy

Turkey

Economy - overview:

Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that in 2001 still accounted for 40% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The most important industry - and largest exporter - is textiles and clothing, which is almost entirely in private hands. In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. Meanwhile, the public sector fiscal deficit has regularly exceeded 10% of GDP - due in large part to the huge burden of interest payments, which account for more than 50% of central government spending. Inflation, in recent years in the high double-digit range, fell to 26% in 2003. Perhaps because of these problems, foreign direct investment in Turkey remains low - less than $1 billion annually. In late 2000 and early 2001 a growing trade deficit and serious weaknesses in the banking sector plunged the economy into crisis - forcing Turkey to float the lira and pushing the country into recession. Results in 2002-03 were much better, because of strong financial support from the IMF and tighter fiscal policy. Continued slow global growth and serious political tensions in the Middle East could result in negative growth in 2004.

GDP:

purchasing power parity - $489.7 billion (2002 est.)

GDP - real growth rate:

7.8% (2002 est.)

GDP - per capita:

purchasing power parity - $7,300 (2002 est.)

GDP - composition by sector:

agriculture: 12.9%
industry: 30.4%
services: 56.7% (2001)

Population below poverty line:

NA%

Household income or consumption by percentage share:

lowest 10%: 2.3%
highest 10%: 32.3% (1994)

Distribution of family income - Gini index:

41.5 (1994)

Inflation rate (consumer prices):

45.2% (2002 est.)

Labor force:

23.8 million
note: about 1.2 million Turks work abroad (2001 3rd quarter)

general assessment: undergoing rapid modernization and expansion, especially with cellular telephones
domestic: additional digital exchanges are permitting a rapid increase in subscribers; the construction of a network of technologically advanced intercity trunk lines, using both fiber-optic cable and digital microwave radio relay is facilitating communication between urban centers; remote areas are reached by a domestic satellite system; the number of subscribers to mobile cellular telephone service is growing rapidly
international: international service is provided by three submarine fiber-optic cables in the Mediterranean and Black Seas, linking Turkey with Italy, Greece, Israel, Bulgaria, Romania, and Russia; also by 12 Intelsat earth stations, and by 328 mobile satellite terminals in the Inmarsat and Eutelsat systems (2002)

key transit route for Southwest Asian heroin to Western Europe and - to a far lesser extent the US - via air, land, and sea routes; major Turkish, Iranian, and other international trafficking organizations operate out of Istanbul; laboratories to convert imported morphine base into heroin are in remote regions of Turkey as well as near Istanbul; government maintains strict controls over areas of legal opium poppy cultivation and output of poppy straw concentrate